Free cash flow amounted to EUR 166 million in fiscal year 2022 compared to EUR 560 million in the prior-year period. Improvements in EBIT were more than offset by the increase in inventories as well as the significant step-up in capital expenditure. Free cash flow is calculated as the sum of cash flow from operating activities and cash flow from investing activities.
Change in cash and cash equivalents
(in EUR million)
At EUR 357 million, cash flow from operating activities was 46% below the prior-year level (2021: EUR 658 million), as improvements in EBIT were more than offset by the increase in inventories. The significant increase in cash flow from investing activities to a level of EUR 192 million (2021: EUR 98 million) mainly reflects the substantial step-up in capital expenditure in fiscal year 2022, aiming at supporting the successful execution of “CLAIM 5” through increased investments in the global store network and the further digitalization of the business model. Financial Position, Capital Expenditure
At EUR 307 million, cash flow from financing activities decreased compared to the prior year (2021: EUR 409 million), mainly reflecting a decline in financial liabilities. Financial Position, Capital Structure and Financing